Flip Flop Shops

What were the specific circumstances and locations of the 3 litigation cases initiated against the franchisor, and how were they resolved?

Can you provide a detailed breakdown of the 41 units that ceased operations since 2022—were these voluntary closures by franchisees citing specific reasons, or closures for other causes?

Why did closure activity spike to 14 units in 2023 compared to 5 units in 2022? What market or operational changes occurred that year?

The system experienced -5.7% annual unit decline over 3 years. What is the franchisor's strategy to reverse this trend and support existing franchisees?

Average gross sales of $473,319 fall below the typical range for retail franchises. What are the franchisor's expectations for unit economics, and what percentage of current units are profitable?

With a 1-year turnover rate of 24.5%, what percentage of franchisees are actively renewing their contracts, and what are the primary reasons franchisees are not renewing?

What specific refurbishment requirements and costs are franchisees expected to meet upon renewal, given the 9 renewal conditions listed in the agreement?

The initial term of 8 years is shorter than typical. Why did the franchisor choose an 8-year term instead of the standard 10 years, and does this affect renewal likelihood?

Can you clarify the encroachment protection policy? If territory is not exclusive, what prevents the franchisor from opening new units near existing franchisees?

How many of the 3 litigation cases involved franchisees, and what were the primary dispute categories (e.g., non-payment of fees, breach of contract, operational disputes)?

What is the median age of current operating units, and what percentage of units are beyond their initial 8-year term?

The non-compete clause restricts business within 15 miles of any Flip Flop Shops location for 2 years post-exit. How does the franchisor enforce this, and have there been enforcement actions?

Given the 9 renewal conditions, can you provide a sample of franchisees who successfully renewed and detail what investments and requirements they faced?

What support or training does the franchisor provide to help franchisees achieve or exceed the median sales of $333,235, particularly for units performing below the bottom quartile of $250,000?

The franchisor maintains control over 8 supplier categories. What is the markup on these mandated purchases, and how transparent is the franchisor about the cost impact to franchisees?

Personal guarantees are required from all principals and spouses. In cases of franchisee disputes or closure, how has the franchisor exercised the spousal guarantee?

What percentage of new franchisees opened in the past 3 years have survived beyond their first 24 months of operation?

Are there any recent changes to the franchise agreement, fee structure, or renewal terms that current franchisees might have accepted under different conditions?

Can you provide a list of reference franchisees who have owned units for the full 8-year initial term and are renewing, versus those who exited before or at contract end?